United States Steel Corporation Completes Sale of Stelco to Bedrock IndustriesJuly 07, 2017
United States Steel Corporation, a leading integrated steel producer and Fortune 300 company (“U.S. Steel”), completed the sale of Stelco Inc. (formerly, U.S. Steel Canada Inc.) (“Stelco”) to Bedrock Industries Group LLC, a privately funded metals, mining and natural resources company. Stelco had been operating under the protection of the Companies’ Creditors Arrangement Act since being granted an initial stay of proceedings in September 2014. On June 9, 2017, the Ontario Superior Court of Justice sanctioned a second amended and restated plan of compromise, arrangement and reorganization (the “Plan”) pursuant to which the sale and restructuring of Stelco was implemented.
In connection with the completion of the restructuring, U.S. Steel received approximately $127 million in satisfaction of secured claims against Stelco. Pursuant to the Plan, U.S. Steel also obtained releases from Stelco and its key stakeholders of all claims against U.S. Steel for environmental, pension and other liabilities related to Stelco. As part of the transfer of ownership, U.S. Steel has agreed to continue to provide certain transition services to Stelco and has entered into an agreement to supply iron ore pellets to Stelco through January 31, 2022.
Wildeboer Dellelce LLP acted as Canadian corporate legal counsel for United States Steel Corporation with a team that included Perry Dellelce, James Brown, Julie Anderson, Amir Torabi, Melissa Smith (corporate) and John Kutkevicius (tax).